Registration of outside J&K vehicles Do not demand 9% token tax: HC asks govt

Srinagar, Nov 10: The High Court (HC) of Jammu & Kashmir and Ladakh Wednesday directed the government not to demand nine percent token tax on registration of outside J&K vehicles on which a lifetime tax has already been paid in a different state.
A division bench of Justice Ali Mohammad Magrey and Justice Sanjay Dhar directed the authorities to file a response in this regard within three weeks.
“Failing which all the respondents shall appear in person,” the bench directed.
The directions were passed after the petitioner counsel submitted before the court that the respondents are demanding nine percent token tax from the owners of motor vehicles who have applied for a new registration mark in J&K.
“Even though their vehicles are duly registered outside J&K and have already paid a lifetime tax on those vehicles against the judgment and order,” he submitted.
The court after hearing the counsel recorded that the submission has prima facie substance.
In terms of order passed on July 12, 2021, the bench noted, the respondents were asked to file their response within one month “but till date, no response has been filed and the violation to the extent is in continuation.”
The bench recorded that they have no option but to ask the respondents to adhere to the judgment in letter and spirit.
“There shall be no demand made of nine percent token tax from the owners of the vehicles who have already paid the tax at the time of registration from outside the UT of J&K,” the court directed.
In a previous hearing the court had noted that the statement of facts filed by the Transport department falls short of indicating a provision under which the department can realize tax again on a motor vehicle on which a lifetime tax has already been paid in a different state.
The court had directed the authorities to have compliance of Section 47 of the Motor Vehicles Act read with Rule 54 of the Central Motor Vehicles undertaken for assignment of new registration marks of the vehicles which were already registered outside J&K.
It had also directed that respondents were to screen, scrutinize, verify, the genuineness of the documents of any vehicles entering in J&K from outside, having outside registration.
Earlier, on April 29, this year, the court had quashed a circular issued by Regional Transport Officer (RTO) for re-registration of vehicles purchased outside JK and had directed that a vehicle once registered in any state of India, shall not be required to be registered elsewhere in India.
“However, a motor vehicle registered in one state and, if kept for a period exceeding 12 months in another state, shall apply to the registering authority of the new state for the assignment of the new registration mark,” it had held in a judgment.
The court had further ruled that where the lifetime tax has been levied and paid on a motor vehicle at the point of the registration of a vehicle, no further tax can be levied and demanded on the said vehicle, on it being moved from one state to another.
The court listed the matter for hearing on December 02, 2021.

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